Case Summary

Veradigm

NASDAQ: MDRX

Case Details

  • Erwin v. Veradigm Inc. et al.
  • Class Period:February 26, 2021 - June 13, 2023
  • Date Filed:November 22, 2023
  • Jurisdiction:U.S. District Court, Northern District of Illinois
  • Docket Number: 1:23-cv-16205
  • Lead Plaintiff Deadline: January 22, 2024
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Overview

A class action lawsuit has been filed against Veradigm Inc., (“Veradigm” or the “Company”) (NASDAQ: MDRX) and certain of the Company’s top executive officers alleging that they violated the federal securities laws.  The lawsuit seeks to represent all persons and entities who purchased or otherwise acquired Veradigm common stock between February 26, 2021, and June 13, 2023, inclusive (the “Class Period”).

Veradigm Inc., (formerly Allscripts Healthcare Solutions, Inc.) is a healthcare technology company that offers electronic health records (“EHR”), financial management, population health management, and consumer solutions to over 300,000 U.S. healthcare providers.

The Veradigm class action lawsuit alleges that defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that: (i) Veradigm had overstated its historical revenues by at least $20 million; (ii) Veradigm had artificially inflated its revenue by recording duplicate transactions, among other things, over a more than two-year period; (iii) Veradigm had artificially inflated its earnings and margins and materially misrepresented demand for Veradigm’s products and services; (iv) Veradigm had failed to maintain effective internal controls over its financial reporting; and (v) Veradigm had failed to comply with Generally Accepted Accounting Principles regarding appropriate revenue recognition practices.

On February 28, 2023, Veradigm announced that it had “detected certain internal control failures related to revenue recognition that had occurred over the prior six quarters, resulting in a misstatement of reported revenues during those periods.” Veradigm disclosed that the revenue misstatements caused revenue to be overstated by approximately $20 million from the third quarter of 2021 until the fourth quarter of 2022. On this news, the price of Veradigm stock fell nearly 13%. Then, on June 13, 2023, Veradigm revealed that it had identified additional revenue misstatements dating back to fiscal year 2020. Veradigm further disclosed that its internal review on the nature and extent of the accounting and internal control errors would take longer than previously disclosed, and Veradigm’s independent auditors needed more time to complete their audit procedures. As a result, Veradigm would not meet the deadline to file its annual report on Form 10-K. On this news, the price of Veradigm stock fell more than 4%.

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If you purchased or otherwise acquired Veradigm common stock between February 26, 2021, and June 13, 2023, inclusive, and suffered substantial losses, and you wish to serve as lead plaintiff in this lawsuit, we encourage you to submit your information to DiCello Levitt LLP via the form on this page. 

You can also contact DiCello Levitt partner Brian O’Mara by calling (888) 287-9005 or at investors@dicellolevitt.com. 

The deadline to apply to the Court to serve as a lead plaintiff in the Veradigm lawsuit is January 22, 2024.

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